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By John Smith

"The RTZ Corporation PLCFrom a company's point-of-view, a good investment decision is one which results in the purchase of an asset that is worth more than it costs. Thus, in order to judge the merit of an investment opportunity, it is necessary to estimate the value of the assets to be acquired.Discounted cash flow (DCF) analysis has become widely adopted by companies in assessing potential new investments. The principle is a simple one: invest in projects which have a positive net present value, and reject those which do not. However, perhaps because of its apparent simplicity, DCF analysis is frequently misused. Good practice in the use of the technique is discussed, together with several common misconceptions.Sound analysis requires sound data; thus, the valuation process relies heavily upon a wide range of specialists to provide the basic input from which cash flow forecasts can be built up. The analyst must maintain close liaison with these specialists from the outset in order to ensure that the data provided is indeed relevant and complete.IntroductionBefore turning to the main subject of this paper ""How Companies Value Properties"", it is of interest to consider first a slightly different question ""Why do Companies value Properties""? In other words, for what purposes are such valuations prepared? Certainly the commonest, and probably the most important circumstance in which a valuation is required is when the company is considering an investment opportunity. This may be the direct purchase of a property or group of properties from a third party, but could also be the opportunity to develop a new operation or expand an existing one.A very simple objective in making any kind of investment is to make our shareholders richer than they would otherwise have been. That is, to make investments whose value to shareholders exceeds the consideration required to acquire them. Thus the investment decision focusses on the difference between an asset's value and its cost.This distinction between ""value"" and ""cost"" is an important one. Study of a company's balance sheet may tell a lot about the cost of this company's assets, but very little about their value. Then again, it is sometimes argued that a business should be bought because this will result in assets being acquired for less than their replacement cost. This merely compares one cost with another, it says nothing about value."

Jan 1, 1991

Dunn has written an excellent paper providing a wealth of advice on what is often the most costly consumable in the mineral processing plant. As he pointed out, grinding media selection and quality control can play a major role in successful plant operation. Owing to the economic importance of this topic, there are some important factors related to media sizing that I believe merit further comment. Dunn made reference to a slightly simplified version of the Azzaroni (1981) equation and pointed out its successful use for the Henderson SAG and Climax ball mills.

Jan 1, 1991

By D. Hodouin

The optimisation of mineral processing plants requires the evaluation of performance indices such as production rate, product quality, valuable mineral recovery and process efficiency. Decision to change operating conditions or equipment to improve plant performances rely on the significancy of the estimated performance indices. The better is the quality of the estimation, the better is the discrimination capability of the index and as a consequence the larger is the operation improvement. The reliability of performance calculation depends on the sensors nature, accuracy and location, on the data redundancy, on the correction method applied to raw data and finally on the propagation of measurement errors along the calculation of performance indices. To maximize the quality of the data collected for performance evaluation, the following techniques are presented, discussed and illustrated: redundancy and observability analysis, data filtering for mass conservation, variance analysis of performance calculation, and data acquisition strategy design.

Jan 1, 1991

By S. G. Britton

Thin seam mining presents unique challenges when management or economic conditions require significant productivity increases. These challenges are increased depending upon the presence of various external factors such as labor unions, Federal and state regulations, and market characteristics. This paper explores the turn-around situation occurring at Tanoma Mining Company (TMC), a medium-sized underground coal mining company in central Pennsylvania, USA. Using a systematic approach of improving management controls and direction, labor relations, and communications, coupled with an intensive upgrade/rebuild/replacement program for equipment and systems used at the mine, TMC has begun reversing its' cashflow position from negative to positive within two years.

Jan 1, 1991

By W. K. Brinsden

In August 1965, the late Mr Alan Smith, then Mill Superintendent at Gold Mines of Kalgoorlie (GMK), Australia, asked me to investigate the planting of vegetation on the GMK slimes dams in order to ease the dust problem in urban and industrial areas-a problem that is caused largely by dust from these barren slimes dams. My early sources of information were the comprehensive papers in various issues of the Journal of The South African Institute of Mining and Metallurgy. However, the climate of Johannesburg differs from that of Kalgoorlie. The average Johannesburg rainfall, which falls mostly in summer, is 730 mm, and the average maximum summer temperature is 26°C (top 34°C). The winters are cool, the average maximum being 18°C (low -7°C). Kalgoorlie, on the other hand, receives, on average, 257 mm of sporadic rainfall, has hot dry summers with an average maximum of 35°C (top 45°C), and cool winters with an average maximum of 18°C (low -2°C). My obvious choice was to look at established trees growing on the GMK lease. A number of Athel pines were growing vigorously adjacent to the Oroya mining and geology offices and also on a nearby sand dump. The Athel pine (Tamarix aphylla), which is native to North Africa, Asia, and India, was originally introduced into Australia in 1936 by Mr Essington Lewis, then manager of BHP. His cuttings were planted in Whyalla, where some difficulty had been experienced in finding trees and shrubs that would flourish despite the district's low rainfall. In August 1965, cuttings of approximately 20 cm length and 1 cm diameter were taken from the GMK trees, stripped of leaves, and placed in jars of water in the sun. When the cuttings had sprouted both leaves and roots, they were planted in local soil in tins (about 20 cm high and 10 cm in diameter), and watered daily. In October 1965, when the new shoots were about 8 cm long, the trees were transplanted onto a lower flat section¬approximately 30 m wide, 30 m long, and 2 m high-of the Trafalgar slimes dam. No additional soil or fertilizer was used, and the trees were planted in their tins, the bases of which had been removed (the tin would eventually rust away). A few common varieties of non-prickly cactus and two native salt bush (spp Atriplex) were also planted, but did not survive, probably because of the acidity of the slime. During the summer of 1965/1966, Kalgoorlie's rainfall was 88 per cent above the average, and this probably helped the trees to survive. The moisture content was usually about 2,5 per cent from about 10 cm below the surface, and the pH value of the slime (d80 approximately 75 µm) was about 6. The trees were watered twice a week for the first four months and then left untended. By 1974 they had grown to only about 0,7 m, which indicated that their growth in slime was very slow. Other Athel pines were planted on the wall of the dam, but did not survive beyond 1974, probably because of the steep (about 500) slope and the hardness of the walls, which were initially formed by hand-shovelling of the slime as the height of the dam was raised. Five of the six Athel pines planted in 1965, which probably reached maturity (approximately 5 m in height) in 1981-16 years after being planted-have survived. In the early 1980s, waste rock had to be dumped on the dam, but the management of KMA (now KCGM) took care to ensure that the trees were not buried. Trials are being conducted on other tailings dams so that the performance of cuttings taken from the trees on Trafalgar dam can be compared with that of cuttings taken at various sites in Western Australia. It might also be worth while for an attempt to be made to strike cuttings from Trafalgar dam in pots containing different mixtures of soil and slime.

Jan 1, 1991

By W. D. Hausel

The Wyoming Province is an Archean craton which underlies portions of Idaho, Montana, Nevada, Utah, and much of Wyoming. The cratonic block consists of Archean age granite-gneiss with interspersed greenstone belts and related supracrustal terranes exposed in the cores of several Laramide uplifts. Resources found in the Province and in the adjacent accreted Proterozoic terrane include banded iron formation, Au, Pt, Pd, W, Sn, Cr, Ni, Zn, Cu, and diamonds. The Province shows many similarities to the mineral-rich cratons of the Canadian shield, the Rhodesian and Transvaal cratons of southern Africa, and the Pilbara and Yilgarn blocks of Western Australia, where much of the world's precious and strategic metal and gemstone resources are located.

Jan 1, 1991

By Tony A. Rorke, Joe R. Brinkmann

The application of instrumentation to better understand and improve production blasting is one of the most fruitful areas of explosives and blasting research. The majority of instrumented studies of production blasting have relied on the extrapolation of far field measurements to postulate blast performance in regions of interest closer to the charge where rock breaking takes place. However, the nonlinear and dissipative nature of the quantities being measured raises serious questions as to the accuracy and validity of such extrapolations.

Jan 1, 1991

By Jay Jones, William D. Rech

The Henderson Mine developed a water treatment system in 1985 to meet the NPDES requirements for its mine water discharge. Unacceptable levels of Zinc and Manganese formed the basis for the design and operation of the treatment system. Since initial start up, this system has reliably removed metals from the mine water and facilitated low cost compliance with water standards. The potential addition of a bio- monitoring requirement to the NPDES Permit in 1990 has added a second dimension to the metals removal process. This paper will review the history of Henderson's success at developing a low capital treatment system for metals removal and the anticipated effects of bio-monitoring upon this system based upon preliminary bio-monitoring screening.

Jan 1, 1991

By P. R. Busmann, D. J. Rogers

The Bureau of Reclamation's Syar Tunnel project included excavation of a 9.2 kilometer (5.7 mile) long, 3.6 meter (11.8 ft) diameter tunnel through gently dipping sedimentary rocks consisting of shales, siltstones, sandstones and limestone. The tunnel was supported full length with precast concrete invert segments and lightweight steel sets and lagging. Several world records for advance rate were set, including 57 meters (187 ft) in an eight hour shift and 127 meters (417 ft) in a 24 hour day. The tunneling system utilized a remanufactured and modified Robbins hardrock TBM and a 9,280 meter (30,450 ft) long, 61 centimeter (24 inch) wide, continuous conveyor system.

Jan 1, 1991

By Felix E. Mutschler

Alkaline rock-related precious metal deposits include: • orthomagmatic platinum group elements (PGE) ± gold (Au); • porphyry copper-silver-gold (Cu-Ag-Au, ±PGE); • epithermal Au-only, and Au-Ag-base metals; • submarine exhalative Kuroko-, Cyprus-, seamount- and Yellowjacket-type deposits; and • enigmatic deposits akin to Olympic Dam. Coeval epithermal deposits related to porphyry deposits suggest the two types represent separate immiscible fluids evolved in oxidized, CO2-rich alkaline magma chambers. Alkaline rock provinces develop above mantle hot-spots, but crustal structures control the final distribution of magmas and ore fluids. Prospecting guides for alkaline rock-related precious metal deposits include the presence of evolved alkaline rocks, pervasive K-metasomatic, redox and carbonatic alteration and low level Au (±Te, etc.) anomalies. Although alkaline igneous rocks crop out in less than 1 % of the area of the North American Cordillera and craton, alkaline rock-related ore deposits have produced nearly 13% of the total United States and Canadian lode gold production. Large (31-t or 1 million-oz) deposits are common (Fig. 1), and additional deposits and reserves are being discovered. New genetic models are evolving, making alkaline rock-related precious metal prospects attractive exploration targets.

Jan 1, 1991

By J. W. Leonard

Gravity based coal/mineral preparation plants must be operated to yield products of a quality satisfactory to existing markets; but, because of historic control problems, recovery is frequently sacrificed to achieve quality resulting in losses of valuable product. Plant control has ranged from intuitive in-plant spot quality judgments made by various operators to gross methods involving such devices as density gauges, floats, grab-sample on-the-spot sink-float tests, etc. Millions of tons of quality coal/minerals are lost to refuse each year, because of the historic lack of a continuous and dependable control system. The result is both serious economic as well as environmental losses. While the economic losses are obvious, less obvious environmental losses, in the case of coal, result from the misplacement of more ignitable quality fuel to refuse banks. A control system capable of supplying a market-grade coal/mineral product, while continuously minimizing product losses to refuse, has until recently escaped technology.

Jan 1, 1991

By A. Wright

Gold Fields Mining Corporation is presently evaluating gold mineralization beneath thick, wet alluvium at the Chimney Creek Project, Nevada. Contamination of reverse circulation samples has been visually apparent since drilling began in the area. Tests have shown that, while contamination can affect assays, reverse circulation holes appear to define mineralized zones almost as well as the diamond drill holes. To improve reverse circulation sample integrity several techniques were tried including a stiff-mud injection system but with limited success. Diamond core drilling continues to be used in conjunction with reverse circulation drilling to further delineate the mineralization.

Jan 1, 1991

By G. R. Hart

The expected 1990 Clean Air legislation is providing electric utilities with a series of challenges and decisions as the utilities prepare strategies to comply with the resulting regulations. This paper addresses the strategy development of a coal-based utility --the legislation, the process used, the fuel issues, the options available, and the decisions to be made.

Jan 1, 1991

By Alexander Malahoff

Accumulation of cobalt -rich ferromanganese crusts on Pacific seamounts located off-ridge in the Hawaiian EEZ, represents a complex process that involves geologic aging of the seamounts, geographic transportation- of the seamounts on the Pacific plate during the past 80 million years, and geochemical history of the oceans for that period. A comparative study of the building and erosion processes of the young Loihi Submarine Volcano, located south of the Island of Hawaii , and the 80 million year old Cross Seamount, located west of Hawaii , shows that both edifices show wide armchair-shaped talus chutes and intervening ridges of exposed dikes. The similarity between the observed mass wasting process on Loihi and Cross suggests that the slopes of submarine volcanoes are geologically unstable from the time of their origin on the seafloor through their entire geological history. The slopes of Cross are covered by coalesced ferromanganese crust covered talus, steep exposed dike faces, and crust covered dike ridges. A study of the stratigraphy of the crusts shows a range of thicknesses and number of unconformities present. The thickest crusts, up to 8 centimeters, are found preserved within the larger coalesced slabs along the shallower slopes of the talus chutes and along the crests of the ridges between water depths of 400 and 1800 meters. The platinum content was used in stratigraphic correlation between the crusts in the coalesced slabs and those collected from ridges with the PISCES V submersible. In the samples studied, the highest platinum content of 0.7 ppm

Jan 1, 1991

By Robert M. Rowe

Among the increasing operating costs affecting today' s processing facilities are those necessary in meeting the continually growing requirement for safe and environmentally sound materials- control and handling procedures. Of particular interest are materials listed as hazardous, the need to maintain accurate records of their acquisition, consumption and disposal, and the obligation to employees and the community to have information available regarding such materials. Some requirements affecting modern operating facilities are reviewed in this paper, and potential methods for dealing with complex handling and documentation requirements, including computer automation, are discussed.

Jan 1, 1991

By Gordon E. Jackson

I read a book the other day called Opportunity 2000. The book, Opportunity 2000, talks about what's going to happen in the next nine or ten years as we propel ourselves through the 1990s into the 219 century. The book, Opportunity 2000, is a futuristic book, somewhat like Megatrends. It said that by the year 2000, baby boomers will be old people, and when you got here before the baby boomers, how does that make you feel? It said that there will be more women in the American work place by the year 2000 than men. The book, Opportunity 2000, discusses diversity. The big challenge for the 1990s is ?diversity?. We'll have the D-word in the 1990s. We had the G-word in the 1980s ? ?global.? Diversity in terms of more immigrants, more minorities, more females into the American work place, but also value systems diversity. We'll have to deal and adapt to four different generational clusters in dealing and interacting with employees and management in the 1990s-value systems diversity. I think there will be five generational clusters that we'll have to deal with. Massey says four. He says we'll still have the old people around, the World War II mentality; those who

Jan 1, 1991

By Mackenzie Burnett

A high efficiency ejector has been developed which solves the abrasion problem associated with remote pneumatic stowing. The system can also produce cemented fills. The ejector is capable of moving the fill material over 70 ft from the injection point and filling the mine opening to the roof level for a distance of about 30 ft in all directions from the borehole. This system operates by the transfer of momentum from a supersonic air stream to the fill material. The momentum transfer results in a horizontal stream of fill material and air at a velocity of about 100 fps. The ejector fits on the bottom end of a 3 in diameter vertical pipe. Fill material is fed into the ejector at a controlled rate through a hopper mounted over the borehole. High pressure air used to operate the ejector is fed through a second 3 in diameter pipe. This system has the additional feature of mixing water in the air stream which increases the potential momentum of the air stream. Where necessary, cement can be added to the gravel to create a cemented fill. The design parameters and test results for four versions of the ejector are presented in this report.

Jan 1, 1991

By Mark A. Williams

Topography and geology greatly impact the decision of how to plan and operate a surface mine. To extract coal, five primary surface mrning methods are practiced in the United States. These include contour strip. mountamtop removal, area, modified area, and open pit mining methods. The first four approaches are commonly associated with coal mining while open pit techniques, although used in the mining of coal, are more commonly applied to the mining of hard rock, metals, and aggregates. Various sub-routines of the primary surface mining methods are likewrse applied rn the industry.

Jan 1, 1991

By John Dean Smith

In order to discuss problem solving techniques for the future. we must first review the past. This paper will discuss the drilling and blasting problems and techniques that were used by .Imax Coal in the past few years, tn those of today.

Jan 1, 1991

By M. D. Light

An intelligent control system (ICS) is being developed for ferrous iron oxidation by Thiobacillus ferroxitdans. The ICS provides computerized data acquisition and' control of process variables (temperature, Eh, pH, dissolved oxygen arid carbon dioxide concentrations and dilution rate) to maintain the ferrous iron oxidation at the highest possible rate. The ICS uses fuzzy logic for analysis of data inputs and implementation of control strategies. T:his paper provides preliminary information on the development of the ICS and? its operation.

Jan 1, 1991